XYZ sells its products to customers on credit. The credit terms are 2/10, net Only 80 per

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XYZ sells its products to customers on credit. The credit terms are 2/10, net Only 80 per cent of the customers avail themselves of the discount and pay 10 days after the billing.

a. What is the average collection period for XYZ Ltd?

b. If the annual sales are ₹50,000, how much investment has the company made in receivables?

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Corporate Finance Theory And Practice In Emerging Economies

ISBN: 9781108486965

1st Edition

Authors: Sunil Mahajan

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Question Posted: Feb 24, 2024 03:01 AM

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XYZ sells its products to customers on credit. The credit terms are 2/10, net Only 80 per

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a To calculate the average collection period for XYZ Ltd we need to consider the credit terms and th...View the full answer

Corporate Finance Theory And Practice In Emerging Economies

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